CNN Philippines’ Xianne Arcangel and Alyssa Rola contributed to this report.
Metro Manila (CNN Philippines, August 14)— A House panel approved on Wednesday the bill which seeks to reduce corporate income tax rates and update the current fiscal incentives program.
With 27 affirmative votes and two against, the House Ways and Means committee approved the Corporate Income Tax and Incentives Reform (CITIRA) bill, formerly known as the TRABAHO bill, which is the second tranche of the administration’s tax reform program.
The CITIRA bill, the second package next to the Tax Reform Acceleration and Inclusion (TRAIN) law, aims to lower the corporate income tax rate from 30 percent to 20 percent in a period of ten years.
The proposal is seen as a viable solution to make the Philippines’ corporate income tax rate regionally competitive, as the country imposes one of the highest rates in Asia.
The proposed measure also aims to modernize and promote a fair and accountable tax incentive system, which would also help attract more foreign investors.
The bill’s smooth passage comes as the committee invoked Section 48 of the House rules. Under Section 48, the panel can approve priority bills which have been passed on third and final reading in the previous Congress if majority of its members wish to do so.
The tax reform measure was by passed by House of Representatives in September 2018, but failed to get the Senate’s nod during the 17th Congress.
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President Rodrigo Duterte, in his State of the Nation Address in July, urged lawmakers to pass the remaining tax reform packages.
